Tuesday, March 14, 2006

I'll believe it's possible to eliminate crop subsidies if and when it happens:

In Fight
Against Farm Subsidies, Even Farmers Are Joining Foes, by Scott Kilman and Roger
Thurow, WSJ: A movement to uproot crop subsidies, which have been worth
nearly $600 billion to U.S. farmers over the decades, is gaining ground in some
unlikely places -- including down on the farm. In Iowa ... a Republican running
to be state agriculture secretary is telling big farmers they should get smaller
checks. Mark W. Leonard, who collects subsidies himself ... told a room full of
farmers ... that federal payments spur overproduction, which depresses prices
for poor growers overseas. "From a Christian standpoint, what it is doing to
Africa tugs at your heartstrings," Mr. Leonard told them. ...

There is a long history of mostly failed attempts to pare farm payments. But
the current anti-subsidy sentiment ... is stirring attention because it is
unusually broad. Students for Social Justice at Baylor University in Texas have
dumped cotton balls on the ground to protest cotton subsidies. The foundation of
late Nascar legend Dale Earnhardt has teamed up with rock star Bono, ... to
overhaul Western agriculture policies to boost African development. In
Washington, D.C., the Alliance for Sensible Agriculture Policies is meeting to
share ideas about changing the farm bill. Participants include Oxfam and
Environmental Defense from the left, the National Taxpayers Union on the right
and the libertarian Cato Institute. Prominent philanthropic organizations,
including the William and Flora Hewlett Foundation, are financing some of this
advocacy. ... Another spur to the anti-subsidy movement comes from the World
Trade Organization...

The movement is tilting against one of the most deeply entrenched federal
entitlements. In 1996, a Republican-led Congress passed legislation to wean
farmers from subsidies over seven years. But Washington backed off as the farm
economy entered one of its cyclical tailspins. The 2002 farm bill signed by
President Bush is one of the most lavish ever, even as the economic cycle
improved. ... There isn't any serious talk in Washington of wiping out subsidies
entirely, and the powerful farm lobby has defended itself against attacks in the
past. ... But now, farm leaders, federal officials and politicians are seriously
discussing alternatives, such as buying farmers out from subsidy programs,
incentives to encourage farmers to save during good years and paying growers for
environmentally friendly practices...

The government created subsidies during the Great Depression to fight rural
poverty. At the time, 25% of the U.S. population lived on farms. ... Today,
farmers represent less than 1% of the population. ... The government caps annual
payments to an individual farmer at $360,000, though loopholes allow higher
payments. Most subsidies go to farmers who are wealthier than the typical U.S.
taxpayer. Little of it goes to poor farmers because subsides are tied to
production. ... 72% of subsidy money goes to 10% of the recipients. ...

The Bush administration is in the reform camp. ... Last month, the White
House Council of Economic Advisers took the unusual step of devoting a chapter
in the annual "Economic Report of the President" to lambasting crop subsidies,
saying they "hurt countries that could benefit from exporting these commodities
to the United States." President Bush has yet to propose his own specific
solutions. ...

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Agricultural Welfare

I'll believe it's possible to eliminate crop subsidies if and when it happens:

In Fight
Against Farm Subsidies, Even Farmers Are Joining Foes, by Scott Kilman and Roger
Thurow, WSJ: A movement to uproot crop subsidies, which have been worth
nearly $600 billion to U.S. farmers over the decades, is gaining ground in some
unlikely places -- including down on the farm. In Iowa ... a Republican running
to be state agriculture secretary is telling big farmers they should get smaller
checks. Mark W. Leonard, who collects subsidies himself ... told a room full of
farmers ... that federal payments spur overproduction, which depresses prices
for poor growers overseas. "From a Christian standpoint, what it is doing to
Africa tugs at your heartstrings," Mr. Leonard told them. ...

There is a long history of mostly failed attempts to pare farm payments. But
the current anti-subsidy sentiment ... is stirring attention because it is
unusually broad. Students for Social Justice at Baylor University in Texas have
dumped cotton balls on the ground to protest cotton subsidies. The foundation of
late Nascar legend Dale Earnhardt has teamed up with rock star Bono, ... to
overhaul Western agriculture policies to boost African development. In
Washington, D.C., the Alliance for Sensible Agriculture Policies is meeting to
share ideas about changing the farm bill. Participants include Oxfam and
Environmental Defense from the left, the National Taxpayers Union on the right
and the libertarian Cato Institute. Prominent philanthropic organizations,
including the William and Flora Hewlett Foundation, are financing some of this
advocacy. ... Another spur to the anti-subsidy movement comes from the World
Trade Organization...

The movement is tilting against one of the most deeply entrenched federal
entitlements. In 1996, a Republican-led Congress passed legislation to wean
farmers from subsidies over seven years. But Washington backed off as the farm
economy entered one of its cyclical tailspins. The 2002 farm bill signed by
President Bush is one of the most lavish ever, even as the economic cycle
improved. ... There isn't any serious talk in Washington of wiping out subsidies
entirely, and the powerful farm lobby has defended itself against attacks in the
past. ... But now, farm leaders, federal officials and politicians are seriously
discussing alternatives, such as buying farmers out from subsidy programs,
incentives to encourage farmers to save during good years and paying growers for
environmentally friendly practices...

The government created subsidies during the Great Depression to fight rural
poverty. At the time, 25% of the U.S. population lived on farms. ... Today,
farmers represent less than 1% of the population. ... The government caps annual
payments to an individual farmer at $360,000, though loopholes allow higher
payments. Most subsidies go to farmers who are wealthier than the typical U.S.
taxpayer. Little of it goes to poor farmers because subsides are tied to
production. ... 72% of subsidy money goes to 10% of the recipients. ...

The Bush administration is in the reform camp. ... Last month, the White
House Council of Economic Advisers took the unusual step of devoting a chapter
in the annual "Economic Report of the President" to lambasting crop subsidies,
saying they "hurt countries that could benefit from exporting these commodities
to the United States." President Bush has yet to propose his own specific
solutions. ...